Audit profession is a 'black box' to outsiders

The recent high-profile collapse of companies such as Carillion and BHS, concerns about the effectiveness of the regulator in maintaining quality in the audit sector and the potential breakup of the Big Four audit firms, were the focus of discussions at a recent Financial Reporting Council (FRC) meeting about the future of audit.

Outgoing chief executive Stephen Haddrill said: ‘Nothing damages trust and confidence in business more than a company failing soon after it has provided assurances of its good health.

 ‘Audit should play a stronger part along with the directors in stopping this happening.’

This view was echoed by a number of panel members. Jon Seaman, a partner at Mazars said: ‘The profession is at a crossroads. There is certainly a perception that audit quality has dropped.’

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